The paper "Loyalty Program in Ren Bank" is a wonderful example of an assignment on marketing. Business competition is inevitable in any legal business today. Therefore, marketing strategies have shifted to relational from transactional relationships. Businesses are competing for the same customers and offering the same products (Gaurav, 2008, p. 8). Therefore, a business needs to design itself in a way that is a notch higher than its competitors. This is by introducing a unique product or incentive, which pleases the customer and makes them coming for more. Whatever method introduced should be economically viable, quantifiable and justifiable to not only increase sales but also influence frequency and basket size (Soman, 2009).
What is of vital importance in creating customer loyalty is increasing the wallet share (Yuxing, Wagner and Mela, 2007, p. 94). Wallet share is the amount of money a customer invests in business compared to the amount invested with competitor businesses. This share is usually higher for a loyal customer than a non- loyal one. In addition, it gives information on customers’ attitudes towards a business hence a business is able to identify weak points that are making the customers opt for the competitors. Maintaining a customer comes along with several benefits.
Loyal customers are not easily swept away by competitor winds, they are easy to serve, and they increase the shareholder and are more profitable (Curran, Varki and Rossen, 2010, p. 180). However, introducing loyalty programs in an expensive exercise and success is not guaranteed. The success of these programs depends on design. The design of the program should be appropriate for specific customers. It should be customer-focused (Soman, 2009) and (Leonard, 2002, pp.
33). Maintaining a personal relationship with the customer is another vital role in customer relationship marketing. The language used to communicate should be understandable by the customer. The personal relationship individualizes customer needs (Buttle, 1996, p. 17). Therefore, the staff will need to be trained to handle clients on a personal basis, balancing professionalism and personality. From a survey carried out about the same, most respondents were positive about customer relationship marketing. Therefore, it is a risk worth taking as probable returns are high. 1.1 Background Information Ren bank is a local bank with fifty branches throughout the county.
It has been in operation for the last seventeen years. It was started in 1995, as a financing institution and has grown through the years to the bank it is now. A CEO who was the founder of Ren financing institution heads it. The bank offers various banking services to its clients. It has accounts affordable to middle and low-class earners. It offers loans at fair interest rates, mortgages and serviceable credit cards. In addition to handling finances, the bank sponsors various community schemes.